Manufacturer’s National Bank of Detroit had extended credit to Z&Z Leasing and had taken a mortgage on Z&Z’s property as security for the line of credit.

Z&Z defaulted on its payments, and Manufacturer’s took possession of the property. The EPA then notified the bank that underground storage tanks on the property were leaking hazardous materials and that the cleanup would be in the $10,000,000 range. Is Manufacturer’s liable for the cleanup costs? Are there other parties the EPA could pursue for the costs? [Z&Z Leasing, Inc. v Graying Reel, Inc., 873 F Supp 51 (DC)]

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